Coinbase, MicroStrategy Stocks Tank Alongside Crypto Market

Key Takeaways

• Companies with cryptocurrency dealings sustained significant losses in market value on Monday.
• Major losers included Coinbase Global (NASDAQ:COIN), which hit its all-time low, and MicroStrategy, the value of which was lower than its underlying Bitcoin holdings.
• Other crypto stocks and coins were down yesterday as well.

Two of the most prominent cryptocurrency-related stocks were enduring significant losses on Monday: Coinbase and MicroStrategy were down almost 9% since yesterday's market open, with others registering losses as well.

Crypto Market Sell-Off Extends To Stocks

The recent depression in stock prices has been especially bad for many companies related to cryptocurrencies.

Crypto companies have been devastated in recent weeks, with Coinbase and MicroStrategy suffering double-digit losses yesterday alone. Monday, Coinbase hit all-time lows since going public last April, wicking down to just over $162 per share. MicroStrategy hit its 52-week low today, touching $319.01 per share; the stock enjoyed prices of $1,315 less than a year ago. The price of MicroStrategy shares sits at prices that represent only slightly more than a doubling since before the company started buying Bitcoin in 2020.

The recent situation has been so grave for MicroStrategy that the company’s market capitalization now hangs below the value of the Bitcoin it holds. MicroStrategy’s capitalization is down to around $3.45 billion, but the value of its 124,391 Bitcoin (the amount it was known to hold as of Dec. 29), at the approximate $34,000 price per Bitcoin (at time of writing), is roughly $4.23 billion.

Other significant digital assets-related stocks were down, too. Galaxy Digital, Mike Novogratz’s crypto financial services and investment management firm, was dealt a 9% blow to its valuation on Monday. Crypto mining companies such as Marathon, Riot Blockchain (NASDAQ:RIOT), and Hut 8 Mining (NASDAQ:HUT) were down roughly 3%, 5%, and 7%, respectively, since Monday’s market open.

Even Jack Dorsey’s Block (NYSE:SQ)—formerly Square—was down 6%, having also touched its 52-week low on Monday.

The two blue-chip crypto coins were both down yesterday, though BTC, down less than .5% over 24 hours at press time, was struggling less than ETH, which was down 4% on the day. Solana’s SOL and Polygon’s MATIC were also standout losers, down 9% and 10%, respectively.

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